Indiana Bill Would Expand Medicaid Income Eligibility for Disabled

An Indiana legislator has proposed a bill (HB 1950) that would create a Medicaid buy-in program for disabled workers, which would allow individuals with disabilities to retain Medicaid benefits even if their incomes would ordinarily bar them from eligibility, the Indianapolis Star reports. The buy-in program is possible through federal legislation that expanded Medicaid eligibility to disabled workers, ending the practice of "spend[ing] down" assets each month to be eligible for Medicaid coverage. The Star reports that 15 states have used this exemption to create Medicaid buy-in programs or pass legislation authorizing such programs. Under HB 1950, a family of four could earn up to $59,675 and still qualify for benefits. While the legislation requires higher-income workers to pay between $25 and $275 in monthly premiums, the bill caps premiums at 7.5% of a worker's gross income. Workers earning less than 150% of the federal poverty level would not have to pay premiums. The bill also allows Indiana workers to accumulate up to $20,000 in assets, instead of the current cap of $1,500, and still participate in the Medicaid buy-in. Supporters of the legislation say the program will encourage disabled people to work and therefore, save taxpayer funds. State Medicaid officials, however, are "worri[ed]" about creating a new entitlement at the same time lawmakers are "pressing" for cuts in the program. In addition, Patty Hebenstreit, the state's long term care director, said that the added benefits would cost the state $5 million over the next two years (Corcoran, Indianapolis Star, 3/4).